The functional premise of a capitalist economy is that each pays for what it receives in a financial exchange. The underlying premise of a broader social contract, upon which every capitalist economy resides, is that each pays in proportion to what they take from, or, benefit from that social contract. This, in turn, is the justifiable rationale for the current U.S. progressive tax system.
The historical bulk of U.S. human capital and national wealth has been spent to grow the wealth of the super wealthy, and, to protect that wealth once they've acquired it,
all at the progressive loss of life and income of the American Majority. The lives and the blood of the American Majority sacrificed on foreign soil, to impose financial exploitation upon foreign peoples required to increase the wealth of investors in the corporations employing a blood money business model, is possibly the most onerous, and insidious example, but, not the only example of how the American Majority is being taxed to subsidize further wealth accumulation of the most wealthy.The bulk of the benefit of all business law and protective financial regulation, paid for by all citizens, is for the benefit of the wealthiest. From the simplest examples of how the FDIC uses taxpayer money to insure banking deposits, and municipal law enforcement efforts to prevent or investigate property theft, to federal enforcement of law protecting international business activities, the more money and property one has the more of everyone's resources are devoted to protecting that money and property.
While everyone's tax dollars are spent to create and maintain America's infrastructure,
which all business activity and the entire economy utilize and depend upon, including intellectual infrastructures such as the government and the economy, the wealthiest continue to use that infrastructure the most, and to pull the most out of the economy in the form of income. Yet, despite this fact, the wealthiest continue to complain that they pay too much tax, and assert that a flat tax would be fairer. Translated, that means that even though the 1% may use 70% of the nation's resources, and, place 70% of the demands upon the nation's infrastructure, and, take 70% of the nation's income, they should only pay the same 25% tax as the person earning less than enough to live on; as the person earning $10,000.00 per year,
all as an example, as the actual figures vary with the biases of those publishing them. What corporations take from society must be viewed as double dipping into national resources by those wealthy enough to invest disposable income or assets in those corporations. When considered from the perspective of these financial facts, and the fact that the children of the American Majority are routinely sacrificed in combat for corporate profit, while the children of the wealthy routinely get military deferments for bone spurs and religious diversions, and the countless tax loopholes, shelters, and escape hatches that Congress has legislated for the wealthy, to effectively exempt them from paying their fair share of tax, the American Majority indeed has and does, pay proportionately far more in income tax then all of those with greater incomes and wealth than the American Majority.
These parasitic strategies for living off of the efforts of others without just compensation,
gave rise to the revenue generation scheme of consumption tax. Consumption tax is essentially a scheme for the wealthy to avoid paying its fair share of taxes, by shifting a disproportionate share of the overall tax burden to those having the least. It's given that those earning the least spend most, or all, of their income on the taxable necessities of life,
while the wealthiest spend only a fraction of their income on the taxable necessities of life,
and, therefore, do not pay consumption tax in equal proportion to their income. In addition, it's well recognized that the wealthiest shop for their purchases in ways which free them from having to pay consumption tax altogether. Whether it's by purchasing tax exempt in one state and having it shipped to a different state, or, by purchasing from outside of this country and bringing it back by private plane or yacht, or, the wealthy employ endless methods to avoid paying consumption tax that the American Majority can not avoid. Thus, consumption tax is a very discriminatory and unequal form of taxation. As a result of redistributing the tax burdens downwards, the wealthiest are proportionally the greatest takers in the U.S., and, if there are any freeloaders in our society, it is the tax avoiding parasite and predator class. Conclusively, therefore, only a progressive income tax with a sharper and higher rise than that which has prevailed over the disappearance of the Middle Class, and the impoverishment of the American Majority, will satisfy the American Majority as being equitable, or acceptable. #NoFreeRideForTheOnePercent